FCC Finalizes Rural Carrier Broadband Cost Model and Announces Support Offers
FCC staff finalized a rural carrier cost model and announced model-based offers of broadband-oriented Connect America Fund support for rate-of-return carriers that opt into the mechanism. Rate-of-return telcos have until Nov. 1 to decide, on a state-by-state basis, whether they…
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want to receive subsidy support based on the final version of the Alternative Connect America Cost Model or a revised legacy mechanism, said a Wireline Bureau public notice Wednesday in docket 10-90. Both the model-based and revised-legacy mechanisms were approved in an order released March 30 that capped the rate-of-return high-cost fund at $2 billion per year, though model-based support can be supplemented by up to $150 million annually from USF reserves (see 1603300065 and 1603310039). Recipients of model-based support must meet broadband and voice service requirements, including varying levels of broadband deployment (25/3 Mbps, 10/1 Mbps and 4/1 Mbps) that were specified in one of several reports that the PN noted and linked to.